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This year, the average turnover per shop is expected to reach DKK 12 million
– a considerably higher figure than those presented by shops in the American market. In the US, shops are struggling to achieve double-digit figures.
“We have managed to single out excellent locations in Denmark. At the same time, we have succeeded in meeting the need of consumers for food and drink “to go”. The concept obviously appeals to Danish consumers”, explains Jesper Østergaard, managing director of 7-Eleven in Denmark.
7-Eleven has more than 30,000 shops world-wide, and in the US in particular
7-Eleven is represented on virtually every street corner in hundreds of cities. |
Looking for success
The results achieved in Denmark have encouraged shop owners from other countries to visit the Danish shops to determine the reason for their success.
The chain has more than 63 shops in Denmark, but the number is expected to double over the first six months of 2008, as 7-Eleven acquires the shops located at 66 YX petrol stations. The take-over is part of a large-scale business deal made between Shell and YX Energy in Denmark and Norway. Last year YX in Denmark and Norway was taken over by the Norwegian-based Reitan Group, which also manages 7-Eleven in Scandinavia and Finland.
Having recently entered into a co-operative agreement with the Danish railway company DSB, 7-Eleven is also planning to run the shops located at eight petrol stations along the Northern coast of Sealand.
The appeal of central Copenhagen
With a total of 140 shops, 7-Eleven will become a more visible player in the Danish market.
Especially the shops in central Copenhagen appear to be able to achieve great results, and the shops near the town square Raadhuspladsen are at the top of the league.
“The majority of 7-Eleven’s customers live in highly populated areas with a large number of pedestrians”, explains Jesper Østergaard.
The impressive sales figures equal a great income for those responsible for running the shops. Franchisees earn an average of DKK 700,000 per year, and in the best cases, revenue figures reach DKK two million. As a result, 7-Eleven is not expecting any difficulties in the task of finding franchisees for the new shops.
“At 7-Eleven franchisees will be able to earn more money than shop owners in other capital chains do, so it is an appealing thought”, explains Jesper Østergaard. He adds that the average age of a franchisee in 7-Eleven’s 66 shops is 31.
More countries to come
Reitan Servicehandel – parent company of 7-Eleven in Scandinavia – has great expectations of the year to come. The organisation is planning to put in bids for more DSB shops if they are put up for sale. Also, activities in other countries are being planned. The organisation already has the rights to manage 7-Eleven in Finland.
Germany and Great Britain may well be the next to come. 7-Eleven is not currently present in either country, but the impressive results are likely to help Reitan Servicehandel obtain the rights to start up.
This is a translated version of an article by Jens Erik Rasmussen from the Danish Newspaper Jyllandsposten